DETROIT – General Motors plans to launch a program to compensate crash victims or families affected by an ignition switch problem that is linked to at least 13 deaths in crashes of older GM cars.
The company said it expects the program will start accepting claims Aug. 1. Guidelines and other details will be developed in the coming weeks by compensation expert Kenneth Feinberg, GM said.
GM has recalled 2.6 million small cars to repair the ignition switches. A report issued Thursday said it took GM more than a decade to issue the recall because, in part, employees failed to view the switch defect as a safety problem.
GM announced the hiring of Feinberg in April. He previously handled the Sept. 11 Victim Compensation Fund as well as funds for victims of the Boston Marathon bombing and the BP oil spill in the Gulf of Mexico.
Feinberg told The Associated Press that the timeline means I have my work cut out for me.
He said that during the next few weeks, he’ll speak with plaintiff’s lawyers, lawmakers, public interest groups and GM officials.
I’ll propose some ideas based on my experience that will form the basis for a compensation program, he said.
CEO Mary Barra said Thursday morning that the report by former U.S. Attorney Anton Valukas found a pattern of incompetency and neglect, but not a cover-up, at the heart of the Detroit automaker’s long delay in dealing with the faulty switches.
Barra said the company would do the right things for those who were harmed and everything in our power to make sure this never happens again.
The internal investigation and Barra’s remarks don’t deter Lance Cooper, a Georgia-based personal injury attorney who represents victims suing GM.
Cooper said in a statement that documents produced in one lawsuit show that GM opted not to fix the safety defects in cars for cost reasons.
This is why it is critical that the civil cases move forward so that the American public may learn the whole truth, not just the truth GM chooses to disclose, he said.
Feinberg said he’s been focused on his task, not the investigation, so he can’t comment on the latter’s findings or how they might affect those suing GM.
That’s up to them – it’s a voluntary program I’m establishing, he said. The alternative is protracted litigation.